CAPITALSTARS – MCX NEWS UPDATE : 17 Oct 2019

BULLION- Bullion counter may trade on sideways bias. Gold prices held steady on Thursday as weak United States retail sales data fanned concerns that the countrys economy may be feeling the pinch of the long-drawn trade war with China, while palladium held close to a record high hit the previous day. Investors awaited further news on the U.S.-China trade front. U.S. Treasury Secretary StevenMnuchin said on Wednesday that trade negotiators are working on nailing down a phase 1 trade deal text for their presidents to sign next month. Elsewhere, a European Union leaders two-day summit in Brussels starting on Thursday will be dominated by last-gasp efforts to seal a deal on Britains exit from the bloc despite a raft of other pressing issues, from the crisis in the Middle East to the EU budget. Indicative of sentiment, SPDR Gold Trust GLD, the worlds largest gold-backed exchange-traded fund, said its holdings fell 0.16% to 918.19 tonnes on Wednesday from 919.66 tonnes on Tuesday.

ENERGY-Base metals may trade with negative bias. U.S. and Chinese trade negotiators are working to nail down a Phase-1 deal text for their presidents to sign next month, while U.S. Treasury Secretary Steven Mnuchin said he was prepared to travel to Beijing for more meetings. Copper prices edged down on Thursday due to worries about a slowdown in global economic growth and falling demand for industrial metals. U.S. retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy amid an ongoing trade war with China that has dragged to its 15th month. Henan Yuguang Gold and Lead, Chinas largest lead producer, plans to set up a lead-acid battery production line as part of a downstream expansion.

BASE METAL- Oil prices slid on Thursday after industry data showed a larger-than-expected build-up in stocks in the United States, adding to concerns that demand for oil around the world may weaken amid further signs of a global economic slowdown. U.S. crude inventories soared by 10.5 million barrels to 432.5 million barrels in the week to Oct. 11, according to the American Petroleum Institutes weekly report, published ahead of official government stocks data due on Thursday. Meanwhile concerns about the future of the global economy – and therefore oil demand – grew as data from the United States showed that retail sales fell for the first time in seven months in September.